During a holiday period do you think the price elasticity of demand for airline tickets would be the same as in the off-season or would it become more elastic or more inelastic? Explain your answer

Economics Jan 19, 2021

During a holiday period do you think the price elasticity of demand for airline tickets would be the same as in the off-season or would it become more elastic or more inelastic? Explain your answer.

Expert Solution

During the off-season, the price elasticity of demand for airline tickets is more elastic than during a holiday season. This is because people tend to travel more for vacations during holiday seasons, and so the demand for airline tickets tend to be not so much responsive to a change in price.

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